Kotak Mahindra Bank Q1 Results: PAT Improves 79% To Rs 7,448 Cr; NII Saw 9.8% Growth

During today's board meeting in Mumbai, the Kotak Mahindra Bank Board of Directors approved the unaudited standalone and consolidated results for the quarter that ended on June 30, 2024. On a standalone basis, the bank's net profit after tax for Q1FY25 stood at Rs 6,250 crore, up 81% YoY from Rs 3,452 crore in Q1FY24.

Net Interest Income (NII) for Q1FY25 climbed 10% YoY to Rs 6,842 crore from Rs 6,234 crore in Q1FY24, according to Kotak Mahindra Bank. For Q1FY25, Net Interest Margin (NIM) was 5.02%. Operating profit for the bank rose 6% YoY to Rs 5,254 crore in Q1FY25 from Rs 4,950 crore in Q1FY24.

As of June 30, 2024, the bank's advances have grown by 20% YoY, from Rs 337,031 crore in Q1FY24 to Rs 405,957 crore. Customer Assets, which include Credit Substitutes and Advances, grew by 20% YoY as of June 30, 2024, from Rs 362,204 crore to Rs 435,827 crore. As of June 30, 2024, the bank's unsecured retail advances (which include retail microcredit) were 11.6% of net advances.

Average total deposits at Kotak Mahindra's Bank increased by 21% YoY to Rs 435,603 crore in Q1FY25 from Rs 361,295 crore in Q1FY24. In Q1FY25, average current deposits climbed to Rs 62,200 crore, up 5% YoY from Rs 59,431 crore in Q1FY24. In Q1FY25, average savings deposits surged to Rs 122,105 crore, up 2% YoY from Rs 119,817 crore in Q1FY24. In Q1FY25, the average value of term deposits increased to Rs 251,298 crore, up 38% YoY from Rs 182,047 crore in Q1FY24.

As of June 30, 2024, the CASA ratio was 43.4%. GNPA was 1.39% and NNPA was 0.35% as of June 30, 2024 (GNPA was 1.77% and NNPA was 0.40% as of June 30, 2023). As of June 30, 2024, the bank's Basel III Capital Adequacy Ratio was 22.4%, while its CET1 ratio (which includes unaudited profits) was 21.3%. The annualised stand-alone return on assets (ROA) for Q1FY25 was 4.22%, compared to 2.81% for Q1FY24. ROA for Q1FY25 of Kotak Mahindra Bank (annualized) excluding gains on divestment of stake in Kotak General Insurance reached 2.38%.

A 79% YoY boost from Rs 4,150 crore in Q1FY24 to Rs 7,448 crore in Q1FY25 was recorded in the consolidated PAT of the bank. Consolidated PAT for the bank for Q1FY25 was Rs 4,435 crore, excluding gains (net of tax) of Rs 3,013 crore from the sale of its stake in Kotak General Insurance. Return on Assets (ROA) for Q1FY25 (annualised) at the consolidated level was 3.87% (2.63% for Q1FY24). Excluding gains from the sale of a stake in Kotak General Insurance, ROA for Q1FY25 (annualised) was 2.30%. Return on Equity (ROE) for Q1FY25 (annualised) at the consolidated level was 22.04%, compared to Q1FY24's 14.62%.

Excluding gains from the sale of a stake in Kotak General Insurance, ROE for Q1FY25 (annualised) was 13.12%. As of June 30, 2024, the consolidated net worth of the bank was Rs 141,165 crore, taking into account the effect of a rise in reserves of Rs 3,414 crore on the implementation of RBI directives. Consolidated customer assets of the bank, which include credit substitutes and advances (including IBPC and BRDS), increased by 22% YoY to Rs 494,105 crore as of June 30, 2024, from Rs 405,775 crore as of June 30, 2023.

As of June 30, 2024, total assets under management were at Rs 636,311 crore, up 36% year on year from Rs 466,878 crore at the same period in 2023. As of June 30, 2024, the Domestic MF Equity AUM has grown by 64% YoY to Rs 293,167 crore.